Created an attachment (id=4610) [details]
This HTML shows the incorrect rendering of whitespace

In testcase "item one" and "item two" are not bugs, but bad implementaion.
"item three" is a bug. Yours attachment contains XHTML, but this bug is ture
also for HTML 4.01 Strict.

Details: 
"item three" - "SGML (see [ISO8879], section 7.6.1) specifies that a line break
immediately following a start tag must be ignored, as must a line break
immediately before an end tag. This applies to all HTML elements without
exception." cite
http://www.w3.org/TR/html4/appendix/notes.html#notes-line-breaks

"item one" and two - "In order to avoid problems with SGML line break rules and
inconsistencies among extant implementations, authors should not rely on user
agents to render white space immediately after a start tag or immediately
before an end tag." cite http://www.w3.org/TR/html4/struct/text.html#h-9.1

still in 3.2.2 (in reply to mail asking to review reports)

*** Bug 82622 has been marked as a duplicate of this bug. ***

*** Bug 79101 has been marked as a duplicate of this bug. ***

As long as the white space handling within khtml doesn't support the
white-space property, there is little hope to get that done in a clean way ;(

#26326 is the one to look out for 

CVS commit by carewolf: 

Big Bad Bidi Merge.
Merging all changes in bidi.cpp from Webcore/125, and selected ones 
from Webcore/146.

This results in 2182 benign changes in regression outputs.

BUG: 54916
BUG: 59476
BUG: 62904
BUG: 64506
BUG: 69806
BUG: 74800
BUG: 79365
BUG: 86157


  M +15 -1     ChangeLog   1.315
  M +976 -592  rendering/bidi.cpp   1.197
  M +25 -57    rendering/bidi.h   1.19
  M +3 -3      rendering/render_block.h   1.20
  M +3 -1      rendering/render_list.h   1.36
  M +4 -3      rendering/render_object.h   1.198